Havells India Limited (HAVL IN): Buy: Renewables segment grew larger

Research evidence excerpt

Havells India Limited (HAVL IN): Buy: Renewables segment grew larger

to post a revenue, 52-WEEK PRICE (INR)

EBITDA and HSBC net profit CAGR of 14%, 18% and 19%, respectively, over FY26- 1700.00

29e. Strong growth in different verticals like C&W and solar and diversified product

1350.00

categories mitigating seasonality underpin our positive long-term outlook.

1000.00

Key takeaways from earnings call: 1) Renewables: Management expects this 07/25 01/26 07/26

Target price: 1550.00

segment to scale rapidly. Margins were lower this quarter from mix skew towards High: 1614.80 Low: 1129.00 Current: 1187.30

panels (lower margin) vs inverters; improvement expected as mix shifts and as the Source: LSEG IBES, HSBC estimates

business moves more towards consumer-side offerings. 2) INR13bn capex in FY27e:

Major capex will go into C&W (cINR8bn) and new R&D centre (cINR2bn) with rest into Vishal Goel*, CFA

Analyst, India EMS and Consumer Durables

other businesses. 3) C&W segment: volume growth was largely flat across wires and HSBC Securities and Capital Markets (India) Private Limited

cables. Performance was influenced by raw material price volatility affecting channel vishalgoel@hsbc.co.in

+91 0 80 6737 2115

behaviour. 4) Lloyd segment: Single digit AC volume growth, while value growth was

Sandesh Shetty*

higher due to price increases. A&P for Lloyd expected to remain elevated for the next Analyst, India Industrials

couple of years to support top-of-mind awareness and premiumisation. Channel HSBC Securities and Capital Markets (India) Private Limited

sandesh1.shetty@hsbc.co.in

inventory at quarter-end was lower than normal. 6) Lighting: Management said that +91 89 8338 6423

ASP declines have stabilised, and flagged potential for future price hikes.